MW: Yen gets lift as investors fret about Egypt unrest
By Lisa Twaronite, MarketWatch
TOKYO (MarketWatch) — The yen was the winner in Asian trading Monday, as continued unrest in Egypt prompted investors to seek the safe-haven appeal of lower-yielding currencies.
“Political turbulence in Egypt continued over the weekend and has led to a flight toward safe-haven currencies,” like the U.S. dollar, the Swiss franc and the Japanese yen, according to David Forrester and Yuki Sakasai, currency strategists at Barclays Capital.
“But events in the Middle East will not be the only factor to impact on FX this week, with several events” — including euro-area inflation data, a European Central Bank meeting and U.S. non-farm payrolls data — “unlikely to be forced to the background,” they said in emailed comments.
Thousands of Egyptians continue to protest the rule of Egyptian President Hosni Mubarak, who has been in power for three decades. The protests have gone on for about a week. Read latest on Egypt unrest.
Worries about the situation in Egypt weighed heavily on Asian stock markets Monday. Read more on Egypt fears weighing on Asian markets.
Against the Japanese yen, the dollar (USDYEN 82.0100, +0.0300, +0.0366%) slipped to ¥81.98 from ¥82.16 Friday.
The dollar index (DXY 78.07, -0.07, -0.08%) , which tracks the greenback against a basket of six other currencies, bought 78.111, compared with 78.171 late Friday.
The euro (EURUSD 1.3621, +0.0014, +0.1030%) was buying $1.3616, compared with $1.3608 late Friday, and the British pound (GBPUSD 1.5878, +0.0025, +0.1577%) bought $1.5871, compared with $1.5866.
